COURSE OUTLINE

Faculty of Business & Commerce

ACC-306
Cost Accounting

Semester: Spring 2020

Faculty: Faculty of Business & Commerce

Credit Hours: 3 CH
Semester Spring 2020
Program: BSAF, ADAF
Course Convenor: Mr. Aqib Javed
Email aqib.javed@gift.edu.pk , acc306b@gift.edu.pk
LMS Link https://classroom.google.com/u/3/c/NzI3MjU2OTEyMzNa
Consultation Hours: Monday to Friday (as proposed by the course convenor)
Pre-requisite: None
Timing As per University timetable
This document was last updated: 10 May, 2020
Course Description
The course is intended as an introduction for individuals who will make business decisions and
evaluate the performance of managers and business units using data obtained from the accounting
system.

The course will cover the vocabulary and mechanics of cost accounting, basic issues involved in the
design of a managerial accounting system, and the role of management accounting in decisions
concerning resource allocation and performance evaluation.

Throughout the course, we will pay particular attention to various (unintended) dysfunctional
consequences of traditional managerial accounting systems, as well as possible solutions to these
problems.

Course Goals
The aim of the course is to equip students with skills and knowledge to:
● Identify and calculate different types of costs (direct, indirect, variable, and fixed costs).
● Distinguish between job-costing, process-costing, and joint-costing systems.
● Determine the product cost by means of full- costing and direct-costing methods.
● Determine the product cost by means of historical (actual) and standard cost systems.

Learning Outcomes
On completion of this course, participants should be able to understand theoretical framework and
practical application of:
● Cost accounting as information system
● Cost organization, classification, recording and reporting systems
● Computation of cost of goods manufactured and sold
● Accounting treatment of material, labour and overhead costs and their controls

Reading Material
Book: Principles of Cost Accounting by Edward J. VanDerbeck, 15 edition

PowerPoint Slides of chapters included in outline

Lecture notes for all chapters.

 Term Project (If any)
Not applicable
COURSE SCHEDULE & CONTENTS

Class Reading
Topics To Cover Teaching Material Assessment Activities
Session Material
Slides
Introduction about course; &
1 Explain the uses of cost Interactive Q/A
accounting information Session on Google
Classroom
Describe the ethical Slides
responsibilities and certification &
Class Participation on the
2 requirements for management Interactive Q/A
basis of previous session
accountants, as well as corporate Session on Google
governance. Classroom
Slides
Describe the relationship of cost & Oral Quiz or Short
3 accounting to financial and Interactive Q/A Assignment based on the
management accounting. Session on Google concepts already studied
Lecture Notes;
Classroom
Slides;
&
Short video
Identify the three basic elements &
Book
of manufacturing costs. Interactive Q/A
Chapter 1:
Session on Google
Introduction to
Classroom Class Participation on the
4 Cost
Slides; basis of previous session
Accounting
Short video
Illustrate basic cost accounting &
procedures. Interactive Q/A
Session on Google
Classroom
Slides;
Short video
Distinguish between the two
&
basic types of cost accounting
Interactive Q/A
systems. Assignment # 1 from
5 Session on Google
Chapter # 1
Classroom
Slides;
Illustrate a job order cost system. Short video
&
 Interactive Q/A
Session on Google
Classroom

Slides
&
Recognize the two basic aspects Class Participation on the
6 Interactive Q/A
of materials control. basis of previous session
Session on Google
Classroom
Slides
& Oral Quiz or Short
Specify internal control
7 Interactive Q/A Assignment based on the
procedures for materials.
Session on Google concepts already studied
Classroom
Slides; Lecture Notes;
Short video
Account for materials and relate
& &
8 materials accounting to the Quiz # 1 from Chapter # 1
Interactive Q/A
general ledger.
Session on Google Book
Classroom Chapter 2:
Slides; Accounting for
Short video Materials
Account for inventories in a just & Class Participation on the
9
in-time (lean production) system. Interactive Q/A basis of previous session
Session on Google
Classroom
Slides;
Short video
Account for scrap materials,
& Assignment # 2 from
10 spoiled goods, and defective
Interactive Q/A Chapter # 2
work.
Session on Google
Classroom

Slides
Distinguish between the features &
Class Participation on the
11 of hourly rate and piece-rate Interactive Q/A
Lecture Notes; basis of previous session
plans. Session on Google
Classroom
&
Slides
& Oral Quiz or Short
Specify procedures for Book
12 Interactive Q/A Assignment based on the
controlling labor costs. Chapter 3:
Session on Google concepts already studied
Accounting for
Classroom
Labor
Slides;
Account for labor costs and Class Participation on the
13 Short video
payroll taxes. basis of previous session
&
 Interactive Q/A
Session on Google
Classroom
Slides;
Short video
Prepare accruals for payroll &
14 Quiz # 2 from Chapter # 2
earnings and taxes. Interactive Q/A
Session on Google
Classroom
Slides;
Short video
Account for special problems in & Class Participation on the
15
labor costing. Interactive Q/A basis of previous session
Session on Google
Classroom

Slides
&
Identify cost behavior patterns. Interactive Q/A
Session on Google
Classroom Oral Quiz or Short
16 Slides; Assignment based on the
Short video concepts already studied
Separate semi-variable costs into &
variable and fixed components. Interactive Q/A
Session on Google
Classroom
Slides; Lecture Notes;
Short video
Prepare a budget for factory & &
overhead costs. Interactive Q/A
Session on Google Book
Classroom Chapter 4: Class Participation on the
17
Slides; Accounting for basis of previous session
Short video Factory
Account for actual factory & Overhead
overhead. Interactive Q/A
Session on Google
Classroom
Slides;
Short video
Distribute service department Oral Quiz or Short
&
18 factory overhead costs to Assignment based on the
Interactive Q/A
production departments. concepts already studied
Session on Google
Classroom
Apply factory overhead using Slides; Class Participation on the
19
predetermined rates. Short video basis of previous session
 &
Interactive Q/A
Session on Google
Classroom
Slides;
Short video
Account for actual and applied & Assignment # 3 from
20
factory overhead. Interactive Q/A Chapter # 4
Session on Google
Classroom

Slides
Recognize the differences &
between job order and process Interactive Q/A
cost accounting systems. Session on Google
Classroom
Class Participation on the
21 Slides;
basis of previous session
Short video
Compute unit costs in a process &
cost system. Interactive Q/A
Session on Google
Classroom
Slides;
Assign costs to inventories, Short video
Lecture Notes; Oral Quiz or Short
using equivalent units of &
22 Assignment based on the
production with the average cost Interactive Q/A
& concepts already studied
method. Session on Google
Classroom
Book
Slides;
Chapter 5:
Prepare a cost of production Short video
Process Cost
summary and journal entries for &
Accounting –
one department with no Interactive Q/A
General
beginning inventory. Session on Google
Procedures
Classroom Class Participation on the
23
Slides; basis of previous session
Prepare a cost of production Short video
summary and journal entries for &
one department with beginning Interactive Q/A
inventory. Session on Google
Classroom
Slides;
Prepare a cost of production Short video
summary and journal entries for &
24 Quiz # 3 from Chapter # 4
multiple departments with no Interactive Q/A
beginning inventory. Session on Google
Classroom
 Slides;
Prepare a cost of production Short video
summary and journal entries for & Class Participation on the
25
multiple departments with Interactive Q/A basis of previous session
beginning inventory. Session on Google
Classroom
Slides;
Prepare a cost of production Short video
summary with a change in the & Assignment # 4 from
26
prior department’s unit transfer Interactive Q/A Chapter # 5
cost. Session on Google
Classroom

Slides
Compute unit costs when
& Oral Quiz or Short
materials are not added
27 Interactive Q/A Assignment based on the
uniformly throughout the
Session on Google concepts already studied
process.
Classroom
Slides
&
Account for units lost in the
Interactive Q/A
production process.
Session on Google
Classroom Lecture Notes;
Class Participation on the
28 Slides;
basis of previous session
Short video &
Account for units gained in the &
production process. Interactive Q/A Book
Session on Google Chapter 6:
Classroom Process Cost
Slides; Accounting –
Short video Additional
Assign costs to inventories,
& Procedures
29 using the “first-in, first-out” Quiz # 4 from Chapter # 5
Interactive Q/A
method.
Session on Google
Classroom
Slides;
Identify the methods used to Short video
apportion joint costs to joint & Class Participation on the
30
products and account for Interactive Q/A basis of previous session
“by-products”. Session on Google
Classroom

END TERM EXAM

ASSESSMENT
Item Assessment Task Frequency Weightage
1. Quizzes 4 25%

2. Assignments 4 20%
3. Class Participation 1 10%
4. End-Term Exam 1 45%

Students must complete each component of the assessment to the satisfaction of the course
instructor, and achieve an overall mark of at least 40% in order to pass the course. All
components of the above assessment are compulsory, and must be completed in order to obtain a
pass grade. Students are expected to perform satisfactorily in each item.

Course Policies and Rules

Attendance requirement

A candidate with less than 80% attendance in class lectures, laboratory / field work, seminars, etc. will
not be allowed to take the Final Examination in a course. A student cannot withdraw due to shortage of
attendance.
A student not taking the examinations due to shortage of attendance will be graded “F”.
It is the responsibility of the students to keep a record of their attendance profile, and to ensure the
correction of their attendance record. Any omission of attendance due to late arrival or other reasons
must be sorted out by the student with the teacher concerned within 24 hours of the lecture. No excuse
in this regard will be accepted at the time of issuance of examination slips.

General requirement

Enrolment in this course is undertaken on the basis that prior assumed knowledge has been gained by
the attainment of a grade of “pass” or above in the prerequisite course/s (if applicable). Failure to
adhere to this recommendation may result in you having difficulty with the course and not being able to
successfully complete it. Any additional support or special assistance cannot be expected or requested
if you have not completed the recommended prerequisite course/s.
1. To be eligible to pass GBS courses, students must demonstrate a reasonable degree of
competence in the required course objectives as examined in each form of assessment.
2. Non-submission of a piece of assessment will incur a fail grade for the GBS courses.
3. Students are expected to spend time outside of supervised class periods developing skills and
knowledge.
4. Any dishonest assignment will be penalised.
"Dishonest assignment" includes:
⮚ Deliberate copying or attempting to copy the work of other students;
⮚ Use of or attempting to use information prohibited from use in that form of assessment;
⮚ Submitting the work of another person as your own;
 ⮚ Plagiarism (i.e. taking and using the thoughts and writings of another person with the intent
to claim the work as your own);
⮚ Any student found knowingly to have helped another student to produce an assignment
dishonestly will incur the same penalty as awarded to that student.
Full and detailed acknowledgement (e.g. notation, and/or bibliography) must be provided if
contributions are drawn from the literature in preparation of reports and assignments.

Prepared By: Mr. Aqib Javed

Aqib Javed
Reviewed By: Mr. Qasim Mir

Recommended Dr. Ameer Abdul Basit (Dean) /

By: Mr. Naveed Ahmad Mughal (HOD)
Reviewed by Director QEC
QEC
Approved By Online Academic Council Date